Portuguese TSO joins European GO market with 13 TWh supply

Jun 30, 2020 | Montel

(Montel) Portuguese TSO Ren has become the latest member of the European market for guarantees of origin (GO), with the country expected to supply 13 TWh annually, the Association of Issuing Bodies (AIB) said.

So far, 150 companies have applied to take part in the system. A new national registry will start issuing GOs from 1 July, with imports and exports of GOs becoming possible from 1 August, AIB said this week.

The new registry is organized by Ren, which is Portugal’s first member of the AIB. The TSO said its membership will allow Portuguese consumers to document renewables use from domestic power plants for the first time and will bring increased revenues to its power sector.

Portugal is a major renewables producer and aims to increase the share of renewables in its electricity generation mix from 60% currently to 80% by 2030.

AIB is a Brussels-based body that organizes the GO scheme, where power suppliers and consumers across 27 European countries can buy certificates from green energy producers to document renewable energy use.

Portugal’s entry into the scheme should put downward pressure on prices in a market which has already seen prices fall significantly since 2018, said Alexandra Munzer, CEO of analyst company Greenfact.

Back then, standard GOs from Nordic hydropower, an industry benchmark, traded at a record high of EUR 2/MWh, while they are currently languishing at around EUR 0.20/MWh, according to figures from the Green Power Hub.

European-wide demand for GOs rose by 12% to 581 TWh last year, while supply grew 3.5% to 617 TWh, according to Norwegian consultancy Ecohz.

Reporting by:
Olav Vilnes
13:24, Thursday, 25 June 2020